Beige Book Takeaway: New York Rebounds Ahead of the New Year

On January 11, the Federal Reserve Board (FRB) released the first bimonthly Summary of Commentary on Current Economic Conditions report (the Beige Book) of 2012. Read my takeaway here...

When Paying a Premium was Worth It

A story how an expensive purchase was really not that expensive when I did some back of the envelope math. More here.

http://finance.yahoo.com/news/first-person-paying-premium-worth-172600807.html

Home Improvement for Renters?

Does it make financial sense to undertake home improvements and easy repairs if you don't own the place? As a renter, I thought it didn't. In retrospect, some easy and inexpensive repairs and improvements to my rented apartment would have vastly improved my quality of life as a renter. Read more here...

http://finance.yahoo.com/news/first-person-home-improvement-renters-190111719.html

Charity or Scam?

Not all charities are legit, and even qualified ones may not deserve a donation. Here are some ways I protect myself from scammers disguising as charities. Read more here

http://finance.yahoo.com/news/first-person-charity-scam-180838514.html

Interesting articles in WSJ and NY Times that mirror my thoughts/experiences

WSJ: Customers Say to Cable Firms, 'Let's Make a Deal'
Want cheaper cable television? Try asking for it, says the WSJ.
Here is how I chased and got an awesome deal on cable's Triple Play.
First Person: Chasing Discounts on TV Service


Why Books Are Better than e-Books for Children
New research suggests when we read with a child on an e-reader, we may actually impede our child’s ability to learn. Here is the NY Times article.
Here is why I won't be buying an e-book reader anytime soon.
First Person: I Am Not Buying or Gifting an E-book Reader This Year

Charitable contributions: Women do it better

Contrary to popular belief that men predominantly control philanthropic dollars within a household, a recent survey found that in nearly 90% of high net worth individuals, women are either the sole decision-maker or at least an equal partner in charitable decision-making.” Here is the article, from Barron's. 
Read how I view charitable contributions the same way I view investments.

This year, I focused more on what I call charitable "funds of funds." Read more here.

Spring Cleaning Before Spring

While fixing up the house can wait until spring, winter is a great time to clean my closets and pantry. I am giving away coats, clothes, shoes, canned goods, travel toiletries, even Tupperware to benefit others, and making room for new items. Read more here...

I Am Not Buying or Gifting an E-book Reader This Year

Since 2007, e-book readers have "kindled" the love of reading in many people. A thin, portable device that fits comfortably in a jacket pocket, backpack or purse and holds an entire library of books should appeal to avid readers. I love reading, so an Amazon Kindle, Barnes & Noble Nook or iPad 2 should be on top of my wishlist. Read here why I am not buying or gifting an e-book reader.

Toys That Come With Hidden Costs

As a parent, I find myself toy shopping for Christmas, my children's birthdays, or gifts. Price plays a role in my toy purchasing decision, however, many toys and games, some inexpensive and some even free, have hidden costs that are much higher than their sticker price. Why I am avoiding wi-fi enabled tablets like the iPad and Kindle Fire, Zhu Zhu pets, Hex Bugs, or even Let's Rock Elmo. Read more here.

Smile Train: The Co-founder is smiling his way to the bank!

Smile Train--Train Bandit? Image from sxc.hu

You have heard about Smile Train, the charity that provides surgeries to cure cleft palate for only $250 each. It is endorsed by a host of celebrities, included Colin Powell, Robin Williams, and Walter Cronkite. It is the subject of a heart-warming, Oscar-winning documentary, “Smile Pinky.” Seems like a winning proposition, especially when you see the before and after photos on their website and mailings.

But the picture changes when you review Smile Train's IRS tax returns, called Form 990, which can be found online at guidestar.org. Smile Train has been public for less than 4 years, so Charity Navigator does not review its financials.

According to its 2009 IRS Form 990, even though Smile Train received close to $100 million in donations (revenues-line 8) in each of the past three years, it gave out as grants only $35 million in '09 (line 13), and $12.5-14 million in the prior years. The charity spent close to $12 million on printed materials for fundraising. Six officers at the non-profit earned over $150,000, with the co-founder earning almost $500,000 (page 31), including a discretionary bonus, which is more than the CEO of the American Red Cross. All of their independent contractors who made over $100,000 were owned by or affiliated with an officer or board member (page 8, 33). One officer flew only first class and another got a free furnished apartment in Manhattan, which the charity had not classified as W-2 income in the prior years (and did so perhaps after an IRS audit).

Perhaps Smile Train indeed started with a touching mission to cure a deformity and change children's lives. But right now, the operation is run out of Madison Avenue like a slick marketing company with highly paid executives. Only a small part of our donations actually go to deserving kids. Every time I get their fat envelope loaded with photos soliticing money (which is once every two months), I rip it without opening. Until they spend 90% of the money they have collected, my charitable donations are going elsewhere. Would you donate to Smile Train?